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Kuda Bank – A revolutionary, revolving the revolution!
Yesterday, we introduced you to this burgeoning revolution that has swept the Nigerian Banking space using cutting edge technology.
Kuda Bank has been able to achieve so much in so little time using other people’s money (OPM). In 2020, a year when the world was grappling with a pandemic, the startup out of Nigeria raised $10 million — the biggest seed round ever to be raised in Africa, on the back of strong demand for its services.
Kuda was founded by Babs Ogundeyi and Musty Mustapha, two serious-minded Nigerians with a clear vision – use technology to bank the unbanked in Nigeria and diaspora! Their business model is however a clear departure from the conventional banking in Africa’s most populous country. The reason is logical and easily understood. As a continent, Africa is one of the most populous, yet underdeveloped financially, compared to other continents in the world. Banking has also been very centralized and sometimes used as a political tool. Riding on the backbone of some perceived form of decentralized banking, Kuda has appealed to the younger echelon of Nigerians who mostly want to achieve global status while acting locally, and the concept was indeed helped by the novel COVID-19 pandemic which brought to the fore the need for new ways of doing things.
Since having an account is free, how does Kuda make money? Kuda makes money through other services. Among them, users can top up their phones directly from the Kuda app. Kuda acts as a kind of broker in such transaction and makes a percentage from it. Users can also pay bills through the App.
Finally, like other banks, Kuda manages its float by investing it in money market transactions like treasury bills, mutual funds etc.
To be Continued…..
By Daniel R.
Buzwallet Contributor.
